On Monday, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) along with the World Gold Council announced a new gold standard that makes investments in gold compliant with Sharia law.
Although gold has been compliant in certain forms in the past, the subject seemed for many to fall into a gray area, and the new gold standard is designed to clarify the guidelines regarding gold investments.
A recent statement by the WGC and the AAOIFI said: “Until now, there have been no such rules. The new standard shows that investment in gold is permissible provided that all the relevant Shari’ah rulings are satisfied, including those relating to taking possession of gold and the proper calculation of Zakah.”
The possibility of such a new gold standard has been the subject of discussion for some time, and now that it has come to pass, some believe it could potentially be a major game-changer for the gold market.
In a nutshell, this new gold standard:
- Provides needed clarity on gold investments under Sharia law
- Opens various gold investments for 6 billion potential investors
- Makes various gold investments available to an estimated 100 million active investors
- Opens gold investment to the 2 trillion world of Islamic Finance
For the gold market, this is absolutely huge.
It is estimated that this new source of investment demand for gold could reach into the hundreds of tons.
As more and more investors look to add gold to their portfolios, it stands to reason that prices may rise, and rise substantially from current levels.
The recent declines seen in gold over the last several weeks along with this new source of demand could make right now the time to buy gold.
The current dip in gold has already been seeing active bargain hunting, and we do not believe prices will stay near current levels for much longer.
We believe the current gold price represents an excellent value, and a great buying opportunity for the long-term investor.
This is an asset that:
- Can potentially offer a meaningful hedge against inflation or deflation
- Is purchased and held by global central banks
- Can potentially protect against declining currency values and loss of purchasing power
- Has been considered a reliable store of wealth and value for thousands of years
- Has a brand new source of demand that could potentially drive prices significantly higher
The biggest question right now is not if you should buy gold, but rather why wouldn’t you…
If you are interested in adding this key precious metal to your portfolio, we encourage you to act sooner rather than later. Speak with an Advantage Gold account executive today about the potential benefits of physical gold ownership. Our precious metals professionals are here to answer your questions, and to guide you through the process of buying and holding physical gold. We can even show you how to buy physical gold using your IRA account.
Don’t wait for the laws of supply and demand to drive prices higher. Take advantage of the current price of gold while you still can. Call us today at 1-800-341-8584 to get started.Tags: advantage gold, gold, investment demand, islamic finance, regulation, rule, sharia, shariah